Home Builder Grant Commonwealth
Building a new home gives you freedom to design and plan a home that suits your needs, however, it can be a long and expensive process, involving numerous decisions.
If you’re wanting to build a new home, it’s important to do your research around the available grants and programs, as you may be eligible to receive financial assistance, which could save you a lot of money.
Buying a house and land package
House and land packages are becoming an increasingly popular option, especially for first time buyers looking to build.
A house and land package has two options, one being to buy a ready-built home to move into straight away, and the other is made up of a 2-part contract, where you buy the land from the land developer and then buy the house from the builder.
This second option allows you to be involved in designing and planning out your dream home, but can help make the overall process more straightforward than simply buying a block of land on its own.
Combining the home and land loans into one package, a house and land package provides an affordable way to find a property that suits your needs. It enables you to know the combined price of your home and the land from the beginning.
If you’re considering buying a house and land package to build your new home, it is a good idea to find out if you are eligible for the HomeBuilder grant.
HomeBuilder is an Australian Government initiative aimed at providing eligible home owner occupiers with a grant of $25,000 to build a new home or renovate an existing one.
The HomeBuilder grant is available for all dwelling types, including houses, apartments, house and land packages and off-the-plan packages. It assists the residential construction sector by encouraging the commencement of new home builds or renovations.
To access the HomeBuilder grant, you must meet strict criteria, including being aged 18 years or older, an Australian citizen and meeting one of the two income caps. These involve either earning $125,000 per annum as an individual or $200,000 per annum as a couple, based on tax returns.
To be eligible for the HomeBuilder grant you must enter into a building contract between 4 June 2020 and 31 December 2020. However, in November 2020, the HomeBuilder program was extended to 31 March 2021.
The contract requires either, building a new home as your main place of residence where the property value does not exceed $750,000, or substantially renovating an existing home, where the contract is between $150,000 and $750,000 and where the value of your property does not exceed $1.5 million.
Recent HomeBuilder updates
If you’re looking into applying for the HomeBuilder grant, it’s important to keep up to date with some recent changes that were announced to ensure you’re still eligible.
A new $15,000 grant was announced for building grants for either new builds or substantial renovations signed between 1 January 2021 and 31 March 2021, inclusive.
The deadline for submission of applications, whether for the $25,000 grant or the new $15,000 grant, has been extended until 14 April 2021.
The construction commencement timeline has been extended from three to six months for all HomeBuilder applicants. This will apply to all new contracts and those that were entered into on or after 4 June 2020.
For contracts signed between 1 January and 31 March 2021, there has been an increase to the property cap for new build contracts in Victoria and New South Wales to $850,000 and $950,000 respectively. In all other states the existing new build property price cap of $750,000 will remain.
The other existing eligibility criteria remains in place and the $25,000 grant will still be made available for eligible contracts signed on or before 31 December 2020.